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Rank 13: Intel: Riding on the Channels

author-image
DQI Bureau
New Update

Avtar Saini
Director, South Asia
Manni Kantipudi
Director,

IIDC*

Sales & Marketing



(South Asia)


GB Kumar




Internet Solutions Group


Jayant Murty


Marketing


RK Amar Babu


Channels



Asia/APAC

Managers



Debjani Ghosh




Education


Narendra Bhandari



Internet Solutions Group

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This Top 20 entrant is not a company registered in India. It’s a

marketing office of Intel Asia Electronics, Inc, Hong Kong. There is a

subsidiary called Intel Technology India Pvt Ltd*, but for design and

development.

Performance

Highlights
Five distributors sell 1.1 million processors
Still the ‘PC chipmaker’. Depressed server market, slow Itanium take-off
Emerging markets thrust into lower-tier towns
Strengths
Extensive market development and channel/consumer/teacher education activities
GID program; strong channel network
Weaknesses
Competition: AMD and Via get stronger, while channels unhappy with near-zero margins;



Intel may lose key distributors
Weak enterprise server brand equity, still low software support for Itanium
Intel

Asia Electronics, Inc
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STARTUP:

1988
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Products & services:

Processors, motherboards, network products
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BRANCHES: 3

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DEALERS:

2,000
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ADDRESS:

136 Airport Road, Bangalore 560 017
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TEL:

5075000
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FAX:

5202460
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WEBSITE: intel.com/in

Intel’s global Intel Inside campaign’s success has been matched in India

by its channel program. While OEMs buy 30 percent of its chips, two-thirds sell

through five distributors and downstream dealers. And that reflects the

benchmark Genuine Intel Dealer program, which brought brand and structure into a

cottage industry of white-box assemblers. Some 2,000 dealers get GID benefits,

from training and brand use to specific support, such as a program under which

some of them assembled 2,500 laptops last year.

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And last year saw a consumer thrust begin in emerging markets (30 lower-tier

cities) with weekend promos and ‘digital PC parties’, and ‘GID vans with

walk-in P4 demos for 90 towns.

Another push was around the Itanium, Intel’s 64-bit key to the enterprise.

The processor is a fifth of systems value, while Intel’s revenues are a tenth

of the Indian systems market. For Intel is a player only in volume low-end

servers with Pentium and Xeon chips. The real enterprise stuff is all on

high-value big-iron from IBM, Sun, et al. Which is what Intel has tried to

change, in the mind of the CIO.

It did not work last year. Few Itanium servers sold. Now there’s the new

power-packed Itanium 2. But its all uphill still, with early versions of

software. Microsoft’s barely crossed beta with its Itanium server OS, and CIOs

don’t like to test-run their enterprises on early-release OSs.

Other activities: The Bangalore development center doubled its strength. And

the Intel ‘Teach to the Future’ program trained 75,000 teachers in two

years, hoping they’ll help catalyze PC use in schools.

Now, this near-monopoly chipmaker needs to watch its turf. AMD and Via have

moved from near-zero to 15 percent of the market, and are stepping into Intel’s

stronghold: the distribution channels. That, and the enterprise, is where the

chip wars will be fought this year.

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